The saying ‘money rules the world’ captures an important truth about how finance and investment flows determine the future of our society. In order to meet the challenges posed by climate change, there is a great need to redirect investments from economic activities that pollute the environment (such as fossil fuel extraction) into more sustainable activities and green projects (such as recycling and renewable energy). This report explores ways in which this can be successfully achieved. More specifically, the report seeks to answer two overarching questions: 1. What role does the financial sector play in achieving society’s climate goals and in financing the climate transition? 2.How can the government of Sweden influence the financial sector so that capital isincreasingly directed towards more sustainable activities?